The Telegraph
Wednesday , September 13 , 2017

RBI studying case for a cryptocurrency, but wary of private ones like Bitcoin

Mumbai, Sept 13 (PTI): The Reserve Bank of India is uncomfortable with non-fiat cryptocurrencies such as Bitcoin, but is studying the case for its own version, its executive director Sudarshan Sen said on Wednesday.

”As regards non-fiat cryptocurrencies, I think we are not comfortable,” Sen said addressing the India Fintech Day conference here. “Bitcoins for example. That's a private cryptocurrency.”

Fiat cryptocurrency is a digital currency that could be issued by the central bank in place of the physical one at present, he said.

”Right now, we have a group of people who are looking at fiat cryptocurrencies …something that is an alternative to the Indian rupee, so to speak. We are looking at that closely,” Sen said.

The RBI has been repeatedly cautioning everyone against cryptocurrencies, flagging a slew of concerns.

According to some media reports, there has been a growing number of investors in such currencies over the last few years, especially with the huge spurt in the value of a few of them since the Donald Trump administration came in the US.

”Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk,” the RBI had cautioned on its website in February this year.

The RBI has been repeatedly flagging concerns on virtual currencies such as Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks.


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